This paper employs a wage-setting approach to analyze the labor market effects of immigration into Germany. The wage …-setting curve is particularly high for young and well-educated workers. The labor market effects of immigration are moderate: a 1 … percent increase in the German labor force through immigration increases the unemployment rate by less than 0.1 percentage …

The paper contributes to the ongoing debate about the adequate technique to identify the impact of immigration …. Initially the regression analysis on the basis of education-experience cells reveals that the impact of immigration on native … wages in Germany is negative, but small. The subsequent analysis on the basis of occupations using the same data yields a …